Poor Nations Push U.S. for Trade Breaks

WASHINGTON — A coalition of least-developed countries led by Bangladesh and Nepal is pressing its case for a preferential trade program to get duty-free access to the U.S. market for a range of products, including textiles and apparel.

During a panel discussion Friday on the elimination of textile and apparel quotas, several South Asian embassy officials said they have met with U.S. lawmakers recently to find a sponsor for legislation to create a program akin to ones the U.S. has with sub-Saharan African countries and Caribbean Basin nations.

The chances of a bill moving anytime soon are slim. Congress is expected to reconvene for a lame-duck session after the presidential election, but it is highly unlikely lawmakers will take up a new bill before they adjourn for the year.

Embassy officials from Bangladesh, Nepal, India, Sri Lanka and Pakistan joined a senior U.S. trade official in a panel discussion on the end of the quotas at the School of Advanced International Studies.

“Countries like Bangladesh are having to pay an average of 17 percent duties, whereas countries like France and Japan pay a 1.6 percent tariff for their goods to enter the U.S.,” said Syed Hasan Ahmad, ambassador to the Embassy of Bangladesh in Washington. “It’s not free trade. It happens to be that textiles and apparel are one of the most protected items in the U.S.”

Least-developed countries are concerned about the impact of quota removal and potential massive layoffs and economic upheaval. China is expected to dominate apparel and textile production next year and developing countries could lose major export earnings. That’s why 14 countries are pressing for the U.S. to create a program for the poorest South Asian countries.

However, Ashley Wills, assistant U.S. Trade Representative for South Asian Affairs, said, “There is a question as to whether those countries currently with preferential access in the form of zero tariffs will actually benefit very much from that preference. Zero tariffs may not confer the same advantages that quotas do, especially when they can be offset by lower production costs.”

Wills also took issue with Ahmad labeling tariffs on textiles and apparel as “protectionist” and said the 17 percent average apparel tariff is not “prohibitively high.”